Innovative Benefits, Lasting Engagement: Retention Strategies

In today's dynamic employment landscape, attracting and retaining talent requires more than offering competitive salaries and benefits. New generations entering the job market are changing employment expectations, forcing companies to adapt and evolve to meet their diverse needs and priorities, such as flexibility, emotional payment, professional and personal growth, mentoring, and customized training.

"As organizations, our focus must extend beyond offering competitive monetary salaries; we must also consider emotional compensation. Today's employees seek cohesive leadership that resonates throughout the entire organizational structure," says Albeth Rubio, Vice President of Benefits and Compensations, AT&T México.

In Mexico, the reality of remarkably high employee turnover rates, averaging 16.75% across industries over the past decade, according to the Mexican Human Resources Association, underscores the urgent need for organizations to strategically structure their benefits packages. This ensures companies can effectively incentivize long-term commitment while managing costs within budget constraints. By aligning benefits strategically with employee priorities and organizational goals, businesses can create a compelling value proposition that fosters loyalty and retention, says Alejandro Hernández, HR Director Mexico and LATAM, Perfetti Van Melle.

According to Cobee's research results, a significant 93.4% of the 1,501 participants between the ages of 16 and 65 believe that more benefits are a clear sign that companies truly prioritize the well-being of their employees. Nonetheless, Daniela González Aragón, CEO, Mina, underscored that while benefits hold undeniable importance, maintaining individuals' passion and alignment with the company's values takes precedence.

González underscored the significance of employees forming a strong bond with the company's work culture as a crucial factor in retaining them over the long term. “It is imperative to acknowledge that employees who demonstrate effort typically align with the company's culture. Therefore, it is paramount for organizations to establish a well-defined cultural framework," says González. Rubio added that employees must perceive themselves as active participants in the company's culture, advocating for a shift towards human-centric leadership beyond traditional paradigms.

Alejandro Domingo, Country Manager, Cobeee, echoed the importance of work culture and stresses another vital aspect of talent retention: recognizing employees as individuals with essential needs for rest, nutrition, and quality sleep. Furthermore, it is crucial to acknowledge their efforts and offer constructive feedback that validates their work, fostering a sense of appreciation for continued dedication. "Motivation operates on various levels, starting with fulfilling basic physiological needs. It is essential to regard our team members as individuals with fundamental requirements for both rest and fulfillment. Neglecting these basic needs initially can pose challenges in addressing them later," elaborates Domingo .

Rubio emphasized the importance of cultivating a feedback culture to gain insights into organizational dynamics and stay informed about trends. To support collaborators and sustain their alignment with the organization, it is essential to provide them with effective tools. These tools should facilitate open communication channels, encourage constructive feedback, and promote transparency within the organization. Domingo stresses that feedback from companies will enable them to offer a wider range of benefits, such as flexible work options, customized development programs, and innovative wellness initiatives. In this way, organizations not only foster employee engagement and loyalty, but also cultivate an inclusive workplace culture.

Marco Antonio Arzate Hernández, HR Director of Executive Talent, Truper, concurred that the newer generations bring forth distinct values compared to previous generations of workers. Truper emphasized that while in the past, the key to retaining talent was primarily salary-based, nowadays, emotional compensation plays a predominant role. "In contemporary workplaces, emerging generations are seeking mentors rather than traditional bosses," emphasizes Arzate.

Paola Lacorte, HR Director, IBM, emphasizes the significance of personalized experiences as a crucial strategy for fostering long-term talent retention. She acknowledges that while salary considerations hold weight, they are not the sole determinants influencing employees' decisions to remain with or depart from a company. Instead, she underscores the importance of providing tools and opportunities that align with employees' personal and professional aspirations. "In today's landscape, the value proposition for talent involves nurturing a reciprocal relationship. It transcends mere employment; it encapsulates what the role offers to the individual and what makes it appealing," emphasizes Lacorte.

While offering competitive benefits is essential, experts point out that it comes with challenges, especially when faced with budgetary constraints. Financial pressure on the employer or employee can have adverse effects on the business, complicating efforts to attract and retain talent. However, Lacorte stressed the importance of investing in talent, as it improves employee well-being and, ultimately, the company's productivity. "It is a decision that must be made with full commitment once decided. As a company you have to invest; otherwise, turnover rates increase, which costs the company more in the long run," explained Lacorte. Gonzalez added that these investments should be regarded as proactive strategies aimed at saving across multiple fronts in the future. For example, by prioritizing employee wellness and supporting their health, companies have the potential to mitigate absenteeism, thereby fostering enhanced productivity in the long term.

Finally, experts emphasized the importance of leveraging new technologies like artificial intelligence to craft personalized value propositions that cater to the diverse needs within organizations. Arzate urges organizations to listen and adapt their current benefits to create a new paradigm where employees feel truly connected. "We have an AI-powered development program to offer tailored development opportunities to employees based on their profiles. Development initiatives must be personalized to have a lasting impact on collaborators," says Lacorte.